Bitcoin holder’s shares skyrocket 4,000% in Japan due to crypto rally

Bitcoin has been making waves in Japan, largely due to the impacts of US President Donald Trump’s pro-crypto agenda. One company, Metaplanet, has embraced this trend by shifting its focus to hoard the cryptocurrency, resulting in lucrative returns for its shareholders. Over the past year, Metaplanet’s shares have surged by an astounding 4,000%, marking it as one of the top-performing equities in Japan and globally, as per data from Bloomberg. The price of Bitcoin itself reached a record high of US$109,241 on January 20 but has since experienced fluctuations following the implementation of Trump’s trade policies.

Metaplanet’s strategy of accumulating Bitcoin mirrors that of Michael Saylor’s MicroStrategy in the US, which has amassed over US$45 billion worth of the cryptocurrency. Simon Gerovich, Metaplanet’s CEO and former Goldman Sachs trader, was inspired by Saylor’s approach when he learned about it on a podcast. Previously operating as a hotel developer under the name Red Planet Japan since 2013, the company shifted its primary focus to Bitcoin in early 2024 after facing setbacks during the pandemic that led to the closure of most of its hotels.

The move towards Bitcoin has attracted a growing number of shareholders to Metaplanet, totaling almost 50,000, an increase of 500% in 2024. While institutional investor Capital Group is among the shareholders, the majority are retail investors with limited experience in dealing with volatile crypto assets. This high exposure to retail investors has prompted concerns from analysts who emphasize the importance of clear communication regarding the company’s strategy to its shareholders.

Despite Metaplanet’s track record of losses over six consecutive years, the company is projecting a profit in its upcoming fourth-quarter earnings release in Tokyo on February 10. Analysts believe this positive financial outlook will further boost the company’s stock performance in the market. Gerovich, who attended Trump’s inauguration in January, attributes the growing demand for Bitcoin in Japan to the anticipation surrounding a more crypto-friendly regulatory environment in the US.

Metaplanet is not the only company in Japan adopting the MicroStrategy model. Remixpoint, a software developer, announced its plan to invest in Bitcoin in 2024 and has seen its stock value rise by over 300% since then. Capital gains on direct Bitcoin investments are subject to significant taxes in Japan, making investing in companies like Metaplanet through platforms like the Nisa investment program a cost-effective solution for small-scale investors.

Gerovich, an Australian native, sees the depreciating yen as a contributing factor to Japan’s attractiveness for Bitcoin investment, with many investors seeking a hedge against monetary devaluation. Currently holding 1,762 Bitcoins, Metaplanet aims to increase its holdings to 10,000 tokens by the end of 2025 and 21,000 by the following year. The company plans to issue 21 million shares through moving strike warrants to fund these acquisitions and intends to rebrand its sole remaining hotel in Tokyo as “The Bitcoin Hotel,” hosting Bitcoin-themed events and seminars in the future.

Despite its strong Bitcoin position, Metaplanet’s primary business remains its hotel operations, albeit on a small scale according to analysts. The company’s success is closely tied to the performance of Bitcoin, making it vulnerable to market fluctuations. However, with a clear strategy in place and a growing base of shareholders, Metaplanet is poised to capitalize on the expanding interest in Bitcoin in Japan’s investment landscape.